RESULTS PRESENTATION FOR THE 9 MONTHS ENDED 28 FEBRUARY 2019
S E C T I O N 0 1 RESSION 2019 HIGHLIGHTS
2 0 1 9 H I G H L I G H T S TOTAL ANNUALISED RETURN OF 14.2 % FOR THE 9 MONTHS ENDED AVERAGE BASIC RENTAL THROUGH RATE 28 FEBRUARY 2019 R128,54 per m 2 BASED ON INCREASE IN NET TANGIBLE ASSET VALUE (NTAV) AND INTERIM DIVIDEND PER SHARE Property operating expenses achieved of 34,8 % VERSUS FORECAST OF 35.4% VACANCIES STEADY AT 3.1 % 30,9 % AGAINST 3.1% LOAN TO AT LISTING DATE VALUE RATIO OF BASED ON FINANCIAL LIABILITIES NET OF CASH OVER INVESTMENT PROPERTY NTAV PER SHARE INCREASED BY: TOTAL DIVIDEND FOR THE 9 MONTHS ENDED 28 FEBRUARY 2019 OF 8.7% 61.84 cents per share which is ahead of the prospectus forecast of 61.37 cents per share from acquisition date of 1 June 2018 to fjnancial year end date
M O D I M A L L R E D E V E L O P M E N T Completion/ acquisition of 5 054m 2 expansion Fair value R260 million Footfall increase of Located in 33.9% Modimolle, (Nov-Mar 2017/2018 Limpopo vs Nov-Mar 2018/2019) Inclusion of Opened Shoprite as 2nd 1 November 2018 grocery anchor
K W A G G A M A L L Taxi rank expansion to 200 taxis Located in Kwaggafontein, Mpumalanga Fair value R690 million BEFORE Future proofjng of assets AFTER 12 122m 2 Conversion into EXPANSION fully enclosed (19 850m 2 new build post 34 550m 2 mall 7 728m 2 demolition) BEFORE AFTER
S E C T I O N 0 2 ERTS COMPANY OVERVIEW
C O M P A N Y O V E R V I E W LISTED ON MAIN BOARD OF JSE 12 June 2018, retail REIT sector 20 Fair value R5, 406 billion income-producing of investment property shopping centres Market leader in rural 331 388m 2 retail space, across GLA 5 PROVINCES Operating profjt of R330,6 million
T H E P R O P E R T Y P O R T F O L I O Investment property carrying The Exemplar property portfolio comprises 20 income value make-up: R’000 generating properties. At the reporting date the property portfolio is fairly valued at R5,406 billion against R5,036 Investment property 5,270,795 billion at listing, an increase of R370 million or 7,35% for Operating lease asset 168,351 the 9 month period. Finance lease liability (32,742) 5,406,404
O U R B U S I N E S S M O D E L As can be seen from an analysis of our fjnancials, our business model is a very simple one: GROSS PROPERTY INCOME [LESS] PROPERTY OPERATING EXPENSES LESS NET INCOME ADMINISTRATIVE OVERHEADS [LESS] NET FINANCE COSTS RENTAL AND R175,4 million RECOVERY INCOME property operating R504,2 million expenses R5,3 million R5,9 million less than less than forecast forecast INTEREST RATE OF 9,11 % HEDGED
S E C T I O N 0 3 ERTISE COMPETITIVE ADVANTAGE
467 YEARS ALL ASSETS internally managed of cumulative experience at the Group Inherent knowledge per centre ensures Under-scaling of developments UNPARALLELED in fjrst phase to allow for FUTURE UNDERSTANDING OF ASSET BASE GROWTH allowing us to maximise centre performance/long-term revenue growth
S E C T I O N 0 4 ERIENCE CURRENT PORTFOLIO
C U R R E N T P O R T F O L I O ALEX MALL 29 559m² Alexandra Economic Interest 100% Weighted ave. rental (R/m 2 ) 129.17 TSAKANE MALL 39 422m² East Rand Economic Interest 50% Weighted ave. rental (R/m 2 ) 141.13 PHOLA MALL 27 884m² KwaMhlanga Economic Interest 53% Weighted ave. rental (R/m 2 ) 125.58 EMOYENI MALL 26 591m² Emoyeni Economic Interest 100% Weighted ave. rental (R/m 2 ) 125.21 CHRIS HANI CROSSING 41 546m² Vosloorus Economic Interest 50% Weighted ave. rental (R/m 2 ) 160.72
S E C T I O N 0 5 OSURE STRATEGIC FOCUS
S T R A T E G I C F O C U S Focus on under-serviced markets T E N A N T S B Y G E O G R A P H I C S E G M E N T % BY GLA % BY REVENUE 37.5% 42.6% GAUTENG GAUTENG 23.4% MPUMALANGA 24.5% MPUMALANGA 15.7% KWAZULU-NATAL 17.8% 15.0% LIMPOPO KWAZULU-NATAL 16.1% 3.3% EASTERN CAPE LIMPOPO 4.1% EASTERN CAPE
L E A S E E X P I R Y P R O F I L E By GLA By Revenue Vacant 3.1% MONTHLY February 2020 11.7% 12.8% February 2021 18.1% 21.4% February 2022 17.5% 19.2% February 2023 15.1% 16.3% After February 2023 34.5% 30.3% TOTAL 100.0% 100.0% 35.9% renewals already renewed at an average 7,36% escalation (based on revenue) 93.16% tenant retention rate
T E N A N T P R O F I L E ( G L A ) 84,83 % CATEGORY A 272 402 m 2 Access to non-GLA Large international and national tenants, large listed income potential tenants and government or smaller tenants in respect of which rental guarantees are issued. These include, inter alia, Shoprite, Woolworths, Pick ‘n Pay, Superspar, Game, Truworths Group, Foschini Group, Mr Price Group, Pepkor, ABSA, FNB, Standard Bank, Nedbank, KFC, Famous Brands, McDonalds, OK Furniture, Liquor City, First period of Roots Butchery, Cashbuild, Builder’s Superstore. trading therefore no comparative 3,31 % CATEGORY B information 10 629m 2 presented Smaller international and national tenants, smaller listed tenants, major franchisees and medium to large professional firms. These include, inter alia, Studio 88, Webbers, Legit, Beaver Canoe, Rage, Delicious Fish & Chips Co. Total distributable income for the period (before antecedent adjustments): 11,86 % CATEGORY C R192,4m 38 084m 2 vs forecast of Local tenants and sole proprietors, including hair R191,6m salons, doctors and pharmacists. This comprises approximately 400 tenants, each predominantly having a small GLA footprint.
S E C T I O N 0 6 ANSION PIPELINE
P I P E L I N E Right of fjrst Relationship refusal to MPD’s pipeline of with MPD >550 000m 2 GLA
S H O R T T O M E D I U M T E R M P R O S P E C T S Riba Cross 12 312m 2 Burgersfort, Limpopo Katale Square Mamelodi Mall Purchase price: R110,000,000 18 455m 2 8 020m 2 JV with Putprop Limited Marapyane, Mpumalanga Mamelodi, Gauteng Mabopane Square Purchase Price: R177,000,000 Mall of Tembisa 11 271 m 2 46 089m 2 Soshanguve, Gauteng Tembisa, Gauteng 2019 2020 2021 BEYOND Dobson Place Makhado Mall 22 383m 2 (1st phase) 9 997 m 2 JV with Putprop Limited Louis Trichardt, Limpopo Dobsonville, Gauteng Bungeni Mall Capital Mall 19 577 m 2 60 000m 2 Hlanganani, Limpopo Pretoria West, Gauteng Zeerust Flagstaff 29 121 m 2 7 995 m 2 Zeerust, North West Flagstaff, Eastern Cape Idutywa 20 088 m 2 Dutywa, Eastern Cape • Project dates and sizes are estimates and may be subject to change
S H O R T T O M E D I U M T E R M P R O S P E C T S
S H O R T T O M E D I U M T E R M P R O S P E C T S
S H O R T T O M E D I U M T E R M P R O S P E C T S
S H O R T T O M E D I U M T E R M P R O S P E C T S
S H O R T T O M E D I U M T E R M P R O S P E C T S
S H O R T T O M E D I U M T E R M P R O S P E C T S
S H O R T T O M E D I U M T E R M P R O S P E C T S
S E C T I O N 0 7 ECTATION OUTLOOK
O U T L O O K Capital raising activities SELF-SUFFICIENT IN PROVISION OF E-COMMERCE UTILITIES PENETRATION (Roof top PV to be rolled out across the portfolio) Malls as SOCIAL SERVICE CENTRES
S E C T I O N 0 8 LAIN FINANCIALS
S T A T E M E N T O F F I N A N C I A L P O S I T I O N Audited as at R’000 28 Feb 2019 5,439,942 Non current assets Investment Property 5,270,795 Operating Lease Asset 168,351 Property, Plant and Equipment 796 154,964 Current assets Loans Receivable 44,400 Trade and Other Receivables 47,711 Cash and Cash Equivalents 62,853 5,594,906 TOTAL ASSETS EQUITY 3,609,122 Total equity 3,463,002 Shareholders’ interest Stated Capital 3,185,487 Retained Earnings 277,515 Non-controlling Interest 146,120 1,824,079 Non Current Liabilities Financial Liabilities 1,695,459 Derivative fjnancial instruments 3,643 Finance lease liabilities 30,174 Deferred Taxation 94,803 161,705 Current Liabilities Trade and Other Payables 159,136 Finance lease liabilities 2,569 5,594,906 TOTAL EQUITY AND LIABILITIES Shares in issue 305,871,896 Shares to be issued 13,867,240 Effective shares in issue 319,739,136 Net asset value per share (Rand) 10.83 Net tangible asset value per share (Rand) 10.83 Net asset value per share (excluding deferred tax) (Rand) 11.13 Net tangible asset value per share (excluding deferred tax) (Rand) 11.13
Recommend
More recommend
